According to Mr. R. Ramachandran, Chairman and Managing Director, Andhra Bank's net profit increased 10.6 per cent at Rs 303 crore in the second quarter ended September 30, compared with Rs 274 crore in the corresponding quarter of the previous financial year. The increase in profit was driven by a 52 per cent increase in net interest income at Rs 783 crore (Rs 515 crore).
Key driver
The key driver for growth was the “prudent asset and liability management as cost of funds were kept at a lower rate while there was some advantage in interest earnings due to a 75 basis point increase in bench mark prime lending rate during the quarter”.
The net profit would have been higher but for the increased expenses in the form of salaries and wages and higher provisions for non-performing assets and contingencies.
The net interest margin (NIM) moved up at 3.91 (3.14 per cent).
The net NPAs had gone up to 0.49 per cent from 0.16 per cent due to increase in NPAs in MSME, retail and agri sectors.
The total business stood at over Rs 1.39 lakh crore (Rs 1.10 lakh crore).
The capital adequacy ratio as per Basel II was at 12.41 per cent.
Redressal mechanism
Mr Ramachandran has formally launched a complaint redressal mechanism through SMS.
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